India's foreign exchange reserves have crossed $350 billion for the first time as the Reserve Bank of India added a massive $7.263 billion to its kitty in a single week ending May 1, taking advantage of steady dollar inflows despite some sell-off in the equity markets.
The reserves stood at $351.869 billion at the end of the reporting week, the RBI said in its weekly statistical update.
Foreign currency assets, which constitute the bulk of reserves and reflect the change in the value of reserves held in other global currencies, including the euro, pound and yen due to exchange rate movements, rose $6.889 billion to $327.153 billion.
The RBI does not give any reason for the surge, but forex dealers said the rise was largely on account of the valuation changes amid dollar's rising strength.
The country's foreign currency cushion against external shocks grew by $32.63 billion since January 2 with foreign investors pumping in dollars in the hope of earning better returns from an economy which showed promise, backed by a growth-oriented government which went about clearing stalled projects.
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